Question

Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good _____.

A. brand valuationB. product consistencyC. brand equityD. product mix

Answer 1

Answer: The correct answer is "C. brand equity".

Explanation: The information given in the scenario indicates that Saffexo has a good brand equity.

Because despite an increase in the price of their products people continue to opt for them, this means that for the quality of the product and the value of the brand consumers are willing to pay more for the product.